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Published in: PharmacoEconomics 4/2019

01-04-2019 | Commentary

The Inclusion of Spillover Effects in Economic Evaluations: Not an Optional Extra

Author: Werner B. F. Brouwer

Published in: PharmacoEconomics | Issue 4/2019

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Excerpt

Increasingly, welfare economic evaluations are used in the context of the allocation of scarce healthcare resources. Many jurisdictions prescribe their use in the context of reimbursement, funding, and/or pricing of new health technologies, especially pharmaceuticals. The fact that the outcomes of such evaluations can influence actual allocation decisions in healthcare underlines the importance of a sound methodology and an appropriate decision-making process. Fortunately, in both areas progress has been made over the past decades. However, there remains room for further improvement, for instance in finding appropriate estimates of monetary values of health, developing broader outcome measures than quality-adjusted life-years (QALYs), finding appropriate equity (principles to estimate) weights for health outcomes, and estimating health opportunity costs. …
Footnotes
1
I use the word ‘optimization’ rather than maximization to allow weighting of health gains, for instance to favor gains at the end of life, in young people or patients in poor health states. Such weights can be seen as reflecting differential social values of health gains. I emphasize that analogous to difficulties in specifying a social welfare function, it may be difficult to specify a full ‘social health value function’.
 
2
Recently, it was, for instance, used to argue against the inclusion of medical costs in gained life-years [22], apparently largely motivated by the outcomes of inclusion (in one particular case). But again, ignoring these costs is inconsistent with the aims and methods of economic evaluations as it ignores real (health) opportunity costs of these expenditures [23]. It thus makes life-prolonging interventions seem more cost effective than they actually are and relatively more cost effective than quality-of-life-improving interventions. Is that (necessarily) fair, also for those people who will receive less care as a consequence? I would argue that ignoring them is not the appropriate answer to the problem, not consistent with the overall decision goals and methods, nor fairer as a rule! Deliberative consideration of these costs and their consequences is warranted.
 
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Metadata
Title
The Inclusion of Spillover Effects in Economic Evaluations: Not an Optional Extra
Author
Werner B. F. Brouwer
Publication date
01-04-2019
Publisher
Springer International Publishing
Published in
PharmacoEconomics / Issue 4/2019
Print ISSN: 1170-7690
Electronic ISSN: 1179-2027
DOI
https://doi.org/10.1007/s40273-018-0730-6

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